Federal Briefs
FERC Delays Duke Sale to Dynegy; Wants More Information on Market Power
News briefs on the federal agencies that impact those doing business in the RTO footprints. This week we include the NRC and the Department of the Interior.

The Federal Energy Regulatory Commission has requested more information on the market impact of the proposed $2.8 billion sale of Duke Energy’s Midwest power plants to Dynegy. FERC’s request caused a postponement of the deal’s closing date.

FERC wants more information to ensure that competition in wholesale power markets will not be impaired. Dynegy is engaged in two large acquisitions — the Duke transaction and a separate $3.45 billion deal with New Jersey-based Energy Capital Partners — to acquire a total of 21 power plants. Both deals were supposed to close during the first quarter.

In their application for approval of the purchase, the companies contend Dynegy’s 6.5% share of the PJM market after completing the two deals would have a minimal impact on competition. FERC said the companies failed to demonstrate that Dynegy’s post-acquisition market share qualified as minimal.

More: Triad Business Journal; Houston Business Journal

NRC Issues Two Yellow Findings Against Entergy’s Arkansas One

Arkansas Unit OneThe Nuclear Regulatory Commission issued two “yellow” findings of “substantial safety significance” against Entergy’s Arkansas Nuclear One station, citing shortcomings in the plant’s flood protection barriers.

The problems “created the potential for water to enter the auxiliary building in the unlikely event of extreme flooding, potentially compromising safety-related equipment,” according to NRC Region IV Administrator Marc Dapas.

The problems were discovered at the Russellville, Ark., power station during inspections in 2013 and 2014. The NRC said Entergy has fixed the problems, and the agency is reassessing “the appropriate level of oversight for the plant.”

More: NRC

‘No Chilled Work Environment’ at Palisades Plant, NRC Determines

Palisades plantNuclear Regulatory Commission inspectors, following up on last year’s report chiding Entergy for a “chilled work environment” at its Palisades Nuclear Plant, says that workers at the Michigan reactor no longer feel uncomfortable raising safety issues.

The NRC reviewed plant operations, conducted focus groups and interviewed 30% of security department workers before issuing its findings that the work climate at the plant had improved. “The NRC will continue to monitor for safety-conscious work environment issues to assess the sustainability of improvements seen to date,” an NRC official wrote.

Palisades spokeswoman Lindsay Rose said the company promised to maintain the improved climate. “This is not an issue that we’re going to drop and wash our hands of,” she said.

More: MLive

FERC Extends Comment Deadline for PennEast Pipeline Project

PennEastThe Federal Energy Regulatory Commission has extended the public comment deadline from Feb. 12 to Feb. 27 on the proposed PennEast natural gas pipeline running from Pennsylvania into New Jersey after the pipeline operator altered some contentious parts of the 108-mile route.

FERC has already scheduled five public “scoping” meetings, starting this week, which will give the public information on the proposed line. Pipeline opponents argued that the public comment period did not allow enough time for property owners affected by proposed route changes to respond.

The $1 billion pipeline would transport natural gas from the Marcellus Shale region in northeastern Pennsylvania to a connection near Trenton, N.J. It is financed by UGI and four New Jersey gas utilities.

More: NJ.com

Interior Department Moves Forward on North Carolina Offshore Wind Lease Plan

The Department of the Interior released an environmental assessment last week supporting a plan to lease up to 300,000 acres off the North Carolina coast to developers of wind farms. “In close coordination with our partners in North Carolina, we are moving forward to determine what places make sense to harness the enormous wind energy potential off the Atlantic seaboard,” Secretary of the Interior Sally Jewell said.

The study delineates three areas off the coast that could be leased to developers: about 122,000 acres 24 miles off Kitty Hawk; a 51,000-acre tract 10 miles off Wilmington; and a third area of about 133,000 acres 15 miles offshore of Bald Head Island.

A North Carolina Sierra Club organizer, Zak Keith, called the announcement “a huge opportunity to create jobs and investment in the clean energy sector without the risk of oil spills.” The study is open for public comment through Feb. 23.

More: News & Observer

FERC & Federal

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